Online lending is already big, but the inflow of funds from large investors into the sector could make it huge. The money is coming in two ways: investment in the startups, and the securitization of loans, according to a Keefe, Bruyette & Woods report.Startups like SoFi and Commonbond are repackaging consumer loans into asset-backed securities (bonds) and selling them onto investors including hedge funds and banks.Proceeds from the bond sales are turned into more loans.Asset-backed securities were also used to bundle mortgages during the run-up to the financial crisis – and blamed for excessive risk taking by mortgage lenders who offloaded the debt to other...